×
You will be redirected back to your article in seconds

Alphabet Beats Q3 Market Expectations With $27.8 Billion Revenue, $6.7 Billion Net Income

Google’s corporate parent Alphabet had another blockbuster quarter: The company handily surpassed analyst expectations on both revenue and earnings for the quarter ending Sept. 30.

Alphabet generated a total of $27.77 billion in revenue in Q3 of 2017, compared to $22.45 billion during the same quarter last year. Net income for the quarter was $6.73 billion on an adjusted basis, compared to $5 billion a year ago.

This equals earnings of $9.57 per share, compared to $7.25 for last year’s Q3. Analysts had expected revenue to come in at $21.9 billion, with earnings of $8.34 per share.

We had a terrific quarter, said Alphabet CFO Ruth Porat. She added that the company had a strong performance across all regions, and also called out “substantial growth in cloud, play, and hardware.”

As expected, Alphabet still made most of its money with Google’s core advertising business, which brought in more than $24 billion. However, the company also saw its revenue from cloud, digital media, and hardware sales grow significantly, from $2.4 billion during Q3 of 2016 to $3.4 billion during this past quarter.

The company also grew its other bets revenue, which includes money coming from Alphabet’s Nest and Fiber businesses, to $8.74 billion. Other bets spending, which also includes the company’s self-driving car efforts, declined, but still landed the entire segment in the red, to the tune of $812 million in losses.

Porat cautioned investors that Google’s costs would grow in the coming quarter as the company would spend more on advertising its hardware products. Google recently introduced the second generation of its Pixel phones, and expanded its lineup of smart speakers with the Google Home Mini and Google Home Max.

The company’s renewed focus on hardware resulted in some questions from analysts, with one asking why Google was doing hardware at all. You are clearly entering an era where you will have different types of computing experiences,” answered Google CEO Sundar Pichai.

As consumers don’t just use phones, but also speakers, TVs, and other devices, Google had to be able to be part of the entire ecosystem. He added that this was also one of the reasons why Google recently acquired key talent from HTC. “As we get into other product categories, it’s important to continue to build that out,” he said, hinting at the possibility to also build speakers and VR products in-house.

More Digital

  • Hooq Sets up Filmmakers Guild For

    Hooq Sets up Filmmakers Guild For Second Year of Pilots

    Asian video streaming platform, Hooq is to air five pilot episodes that have emerged from its Filmmakers Guild. The most successful is guaranteed to be produced as a full series and streamed on the platform. Five original selected screenplays were each awarded $30,000 to be made as pilots, which now air from March 1. The [...]

  • Fortnite Battle Royale

    Epic Pulls 'Fortnite' Ads From YouTube After Child Predator Controversy

    Epic Games is no longer running “Fortnite” pre-roll ads on YouTube after it was discovered they were playing on videos alleged predators used to exploit children, according to The Verge. The developer has paused all of its pre-roll advertising, which plays before a video starts on the streaming platform, a spokesperson said. It also reached [...]

  • New Video Shows Off Vive Cosmos

    New Video Shows Off Vive Cosmos VR Controllers

    There’s still much to be learned about HTC’s Vive Cosmos — like release date, specs, and price — but Wednesday the company released a short teaser video giving a slightly better glimpse of the controllers in action. The new controllers look a bit like rival VR headset Oculus Rift’s Touch controller, though reversed in some [...]

  • YouTube logo

    Disney Reportedly Pulls YouTube Ads Over Child-Exploitation Controversy

    YouTube is facing yet another big advertiser backlash, with Disney, Epic Games and McDonald’s among the marketers said to have pulled their ad spending after the Google-owned video platform was accused of facilitating what a critic described as a “soft-core pedophilia ring.” Vlogger Matt Watson, in a Feb. 17 video on his YouTube channel MattsWhatItIs, [...]

  • Samsung Galaxy S10, Galaxy S10+ Unveiled

    Samsung Announces Galaxy S10, Galaxy S10+ Phones

    Samsung officially announced its new flagship phones, the Galaxy S10 and its larger sibling, Galaxy S10+, at its Unpacked press event in San Francisco on Wednesday morning. The new phone features a punch-hole cut-out for its front-facing camera, which allowed the company to use an edge-to-edge screen design without the notch found on the latest [...]

  • Samsung's Galaxy Fold Unveiled at Unpacked

    Samsung Announces Galaxy Fold, a $1,980 Foldable Phone

    Samsung officially announced its new foldable phone, dubbed the Galaxy Fold, at its Unpacked press event in San Francisco Wednesday morning. The device features two screens that unfold to a tablet-sized slate. “We are giving you a device that doesn’t just define a new category, it defies categories,” said Samsung senior vice president of product [...]

  • ABC-Oscar-Game

    ABC to Launch Oscars Live Play-Along Game With $50,000 Grand Prize

    ABC is hoping to drive viewers to its host-less telecast of the 91st Academy Awards on Sunday by dangling the promise of cold, hard cash to one lucky winner. The broadcaster is launching “The Official Oscar Game,” a live game that will let viewers play along in real time during the awards presentation. The game’s [...]

More From Our Brands

Access exclusive content